Global oil prices climbed again on Friday, with Brent crude oil rising about 1% to approach $101 per barrel, extending its weekly gains to roughly 8% as escalating tensions involving Iran continue to unsettle global energy markets.
The latest rise follows several sessions of sharp price increases earlier in the week, though prices eased slightly from those spikes as traders weighed new efforts by policymakers to contain the surge.
Markets remain highly sensitive to developments in the Middle East, where ongoing air strikes and military tensions have disrupted oil production and shipping routes.
Strait of Hormuz disruption fuels supply fears
At the center of the market anxiety is the continued disruption of tanker traffic through the Strait of Hormuz, one of the world’s most critical oil shipping corridors.
The waterway, which carries a significant share of global crude exports, has effectively been closed to normal tanker movements amid security concerns and ongoing military activity in the region.
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The disruption has heightened fears of a major supply shock to global markets, with energy traders closely watching whether the waterway can reopen safely in the coming days.
US seeks coalition to protect oil shipments
In response to the escalating risks to energy supply chains, Scott Bessent has called for the creation of an international coalition to escort oil tankers through the Strait of Hormuz.
Bessent said such an arrangement should be implemented “as soon as it is militarily possible” in order to safeguard global energy flows and reduce pressure on oil markets.
At the same time, Washington has moved to temporarily allow countries to purchase Russian oil currently stranded at sea. The decision expands a waiver previously granted to India, with the aim of increasing supply and preventing prices from climbing further.
Historic strategic reserve release
Earlier this week, the International Energy Agency announced a historic release of 400 million barrels from strategic oil reserves, the largest coordinated release in its history.
The move was intended to stabilise global markets and offset supply disruptions linked to the conflict.
However, the intervention has so far done little to reverse the upward momentum in oil prices, as traders remain concerned about the potential scale of supply losses if disruptions in the Middle East persist.
Markets remain on edge
With the geopolitical situation still volatile and no clear signs of de-escalation, analysts say energy markets are likely to remain extremely sensitive to developments in the region.
For now, the combination of disrupted shipping routes, military tensions and uncertainty around future supply continues to keep oil prices elevated, raising fresh concerns about global inflation and energy costs.
